The Chinese long products market recorded an overall increase in the past week, though prices started to indicate decreases towards the end of the week. Most traders do not think that the market has reached a turning point, but hold the view that these decreases just constitute a price correction after the previous considerable increases seen in the market.
Product name |
Specification |
Category |
Average price (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
6.5 mm |
Q235 |
4,610 |
676 |
+5 |
|
20 mm |
HRB 335 |
4,533 |
665 |
+3 |
|
20 mm |
HRB 400 |
4,667 |
684 |
+4 |
By the end of trading on April 19, in China's three main steel markets, i.e., Shanghai, Beijing and Guangzhou, the prices of Q235 grade 6.5 mm high speed wire rod respectively stood at RMB 4,500/mt ($660/mt), RMB 4,580/mt ($672/mt) and RMB 4,750/mt ($696/mt), with HRB 335 grade 20 mm rebar prices respectively at RMB 4,290/mt ($629/mt), RMB 4,720/mt ($692/mt) and RMB 4,590/mt ($673/mt). Meanwhile, HRB 400 grade 20 mm rebar is priced at RMB 4,120/mt ($635/mt), RMB 4,800/mt ($704/mt) and RMB 4,870/mt ($714/mt) in these respective markets. All prices include 17 percent VAT.
The north China market has been leading the overall domestic longs market trend over the past week, leading the price uptrend in the first half of the week, and being the first market to indicate a decline in the second half of the week, as transactions decreased due to the higher price levels. The markets in eastern and southern China market subsequently also posted slight declines.
On the inventory side, the total volume of inventory in the main Chinese cities reached 1.79055 million mt in the past week, down 45,640 mt week on week and 311,490 mt month on month, while increasing by 544,230 mt year on year.
Ex-factory prices for long steel products in China have been maintaining their rising trend supported by high costs. Because of the decreasing price in the last few days and the limited demand caused by the weather, sales activity has become increasingly quiet. Some small traders have been selling off materials at reduced prices, though most traders are optimistic as regards the prospects for the market in the future. It is thought that in the coming week domestic longs prices may decline again but by a relatively limited margin.